Since its collapse to $879 in June, Ethereum (ETH) has had difficulty rebounding in the bear market of 2022, making many vain attempts to hit highs above $2,000 instead.
However, the present bullish green candle would suggest that Ethereum is receiving support from the triangular pattern described in Wednesday’s post.
As investors decide which cryptocurrencies to add to their portfolios for 2023, Ethereum is now trading at $1,197. More buyers may enter the market if the price rises over the 50-day Exponential Moving Average (EMA), which is currently at $1,255.
Ethereum’s price needs right now demonstrate to investors that it can withstand drops below $1,100 and $1,000 while remaining above immediate resistance at $1,200. Some analysts expect a flat trajectory for 2023, while the most positive analysts want to see the price of Ethereum rise above $4,000 by the end of the year.
When smart contracts were introduced to the Ethereum blockchain technology in 2015, it completely changed the cryptocurrency industry.
The utility of the second-largest cryptocurrency is still increasing dramatically, particularly with the switch to a proof-of-stake (PoS) consensus algorithm. Ethereum’s worth may be related to the issues it resolves, claims Kiana Danial, author of Cryptocurrency Investing For Dummies.
“Ethereum is valuable because of the issue it resolves, the magnitude of its platform, and the volume of individuals who utilise it to develop their own apps,” says the author.
The size of the Ethereum ecosystem is tough to comprehend until you realise that the blockchain platform is home to over 44 million smart contracts.
When Shanghai undergoes its much-awaited upgrade in Q1 2023, methods to lower gas prices and allow scalability using sharding technology will be introduced.
Additionally, according to Etherscan, Ethereum achieved more than 200 million unique addresses last week. The data above demonstrates the Ethereum platform’s value and supports the possibility of a $10,000 price increase.
In fact, a Bloomberg expert just last week forecasted that ETH will surpass BTC in 2023 because of its fundamentals. In its attempts to reverse the dominating negative trend that has continued throughout 2022, the price of Ethereum has been up against a difficult uphill struggle.
According to several observers, it is challenging for cryptocurrency to reach $10,000 in the upcoming 12 months. However, it’s crucial to keep in mind that everything is possible in the realm of cryptocurrencies.
The 50-day Exponential Moving Average and the $1,200 level are the current targets for Ethereum’s ascent. Ether has lost more than 75% of its value since reaching an all-time high of $4,878 in November 2021; therefore, it would take a positive increase of almost 700% for it to reach the $10,000 level.
While this might sound implausible, it’s important to remember that Ethereum has already seen more than 700% increases on several occasions. For instance, Ethereum increased from about $80 to $4,800 in the most recent cycle.
It is impossible to forecast if Ethereum will be able to climb despite the odds and reach $10,000 because the macroeconomic environment now and the characteristics of the cryptocurrency industry are different from those of 2021 and 2017.